EUR/GBP Turns Negative, 0.7770 Support on Test

The EUR/GBP
pair's bounce off day's low got rejected at 0.7800 handle, dragging the
pair back towards a short-term descending trend-channel support near
0.7770 level.

On Monday, the pair managed to recover gap down
opening below the trend-channel support to reclaim 0.7800 mark but
failed to extend the momentum. The pair subsequently reversed all of its
gains to drop back and retest the descending trend-channel support.

Technical levels to watch

Reversal
from immediate resistance level and subsequent retest of a short-term
descending trend-channel support points to extension of the pair’s
near-term weakness. However, it would be prudent to wait for a decisive
break below the channel support.

A follow-up selling pressure,
dragging the pair below trend-channel support, would confirm a
break-down, which could now trigger a fresh leg of weakness initially
towards 0.7735 intermediate support, before eventually dropping to March
daily closing lows support near 0.7715 region.

On the upside,
0.7800-0.7815 area now becomes immediate strong resistance and only a
sustained strength above 0.7800 mark handle would bring 0.7850
resistance back in action.